§ 6A-2.1-103 - Definitions and index of definitions.
SECTION 6A-2.1-103
§ 6A-2.1-103 Definitions and index ofdefinitions. – (1) In this chapter unless the context otherwise requires:
(a) "Buyer in ordinary course of business" means a person whoin good faith and without knowledge that the sale to him or her is in violationof the ownership rights or security interest or leasehold interest of a thirdparty in the goods buys in ordinary course from a person in the business ofselling goods of that kind but does not include a pawnbroker. "Buying" may befor cash or by exchange of other property or on secured or unsecured credit andincludes acquiring goods or documents of title under a preexisting contract forsale but does not include a transfer in bulk or as security for or in total orpartial satisfaction of a money debt.
(b) "Cancellation" occurs when either party puts an end tothe lease contract for default by the other party.
(c) "Commercial unit" means such a unit of goods as bycommercial usage is a single whole for purposes of lease and division of whichmaterially impairs its character or value on the market or in use. A commercialunit may be a single chapter, as a machine, or a set of chapters, as a suite offurniture or a line of machinery, or a quantity, as a gross or carload, or anyother unit treated in use or in the relevant market as a single whole.
(d) "Conforming" goods or performance under a lease contractmeans goods or performance that are in accordance with the obligations underthe lease contract.
(e) "Consumer lease" means a lease that a lessor regularlyengaged in the business of leasing or selling makes to a lessee who is anindividual and who takes under the lease primarily for a personal, family, orhousehold purpose.
(f) "Fault" means wrongful act, omission, breach, or default.
(g) "Finance lease" means a lease with respect to which:
(i) The lessor does not select, manufacture, or supply thegoods;
(ii) The lessor acquires the goods or the right to possessionand use of the goods in connection with the lease; and
(iii) One of the following occurs:
(A) The lessee receives a copy of the contract by which thelessor acquired the goods or the right to possession and use of the goodsbefore signing the lease contract;
(B) The lessee's approval of the contract by which the lessoracquired the goods or the right to possession and use of the goods is acondition to effectiveness of the lease contract;
(C) The lessee, before signing the lease contract, receivesan accurate and complete statement designating the promises and warranties, andany disclaimers of warranties, limitations or modifications of remedies, orliquidated damages, including those of a third party, such as the manufacturerof the goods, provided to the lessor by the person supplying the goods inconnection with or as part of the contract by which the lessor acquired thegoods or the right to possession and use of the goods; or
(D) If the lease is not a consumer lease, the lessor, beforethe lessee signs the lease contract, informs the lessee in writing (a) of theidentity of the person supplying the goods to the lessor, unless the lessee hasselected that person and directed the lessor to acquire the goods or the rightto possession and use of the goods from that person, (b) that the lessee isentitled under this chapter to the promises and warranties, including those ofany third party, provided to the lessor by the person supplying the goods inconnection with or as part of the contract by which the lessor acquired thegoods or the right to possession and use of the goods, and (c) that the lesseemay communicate with the person supplying the goods to the lessor and receivean accurate and complete statement of those promises and warranties, includingany disclaimers and limitations of them or of remedies.
(h) "Goods" means all things that are movable at the time ofidentification to the lease contract, or are fixtures (§ 6A-2.1-309), butthe term does not include money, documents, instruments, accounts, chattelpaper, general intangibles, or minerals or the like, including oil and gas,before extraction. The term also includes the unborn young of animals.
(i) "Installment lease contract" means a lease contract thatauthorizes or requires the delivery of goods in separate lots to be separatelyaccepted, even though the lease contract contains a clause "each delivery is aseparate lease" or its equivalent.
(j) "Lease" means a transfer of the right to possession anduse of goods for a term in return for consideration, but a sale, including asale on approval or a sale or return, or retention or creation of a securityinterest is not a lease. Unless the context clearly indicates otherwise, theterm includes a sublease.
(k) "Lease agreement" means the bargain, with respect to thelease, of the lessor and the lessee in fact as found in their language or byimplication from other circumstances including course of dealing or usage oftrade or course of performance as provided in this chapter. Unless the contextclearly indicates otherwise, the term includes a sublease agreement.
(l) "Lease contract" means the total legal obligation thatresults from the lease agreement as affected by this chapter and any otherapplicable rules of law. Unless the context clearly indicates otherwise, theterm includes a sublease contract.
(m) "Leasehold interest" means the interest of the lessor orthe lessee under a lease contract.
(n) "Lessee" means a person who acquires the right topossession and use of goods under a lease. Unless the context clearly indicatesotherwise, the term includes a sublessee.
(o) "Lessee in ordinary course of business" means a personwho in good faith and without knowledge that the lease to him or her is inviolation of the ownership rights or security interest or leasehold interest ofa third party in the goods leases in ordinary course from a person in thebusiness of selling or leasing goods of that kind but does not include apawnbroker. "Leasing" may be for cash or by exchange of other property or onsecured or unsecured credit and includes acquiring goods or documents of titleunder a preexisting lease contract but does not include a transfer in bulk oras security for or in total or partial satisfaction of a money debt.
(p) "Lessor" means a person who transfers the right topossession and use of goods under a lease. Unless the context clearly indicatesotherwise, the term includes a sublessor.
(q) "Lessor's residual interest" means the lessor's interestin the goods after expiration, termination, or cancellation of the leasecontract.
(r) "Lien" means a charge against or interest in goods tosecure payment of a debt or performance of an obligation, but the term does notinclude a security interest.
(s) "Lot" means a parcel or a single chapter that is thesubject matter of a separate lease or delivery, whether or not it is sufficientto perform the lease contract.
(t) "Merchant lessee" means a lessee that is a merchant withrespect to goods of the kind subject to the lease.
(u) "Present value" means the amount as of a date certain ofone or more sums payable in the future, discounted to the date certain. Thediscount is determined by the interest rate specified by the parties if therate was not manifestly unreasonable at the time the transaction was enteredinto; otherwise, the discount is determined by a commercially reasonable ratethat takes into account the facts and circumstances of each case at the timethe transaction was entered into.
(v) "Purchase" includes taking by sale, lease, mortgage,security interest, pledge, gift, or any other voluntary transaction creating aninterest in goods.
(w) "Sublease" means a lease of goods the right to possessionand use of which was acquired by the lessor as a lessee under an existing lease.
(x) "Supplier" means a person from whom a lessor buys orleases goods to be leased under a finance lease.
(y) "Supply contract" means a contract under which a lessorbuys or leases goods to be leased.
(z) "Termination" occurs when either party pursuant to apower created by agreement or law puts an end to the lease contract otherwisethan for default.
(2) Other definitions applying to this chapter and thesections in which they appear are:
"Accessions". § 6A-2.1-310(1).
"Construction mortgage". § 6A-2.1-309(1)(d).
"Encumbrance". § 6A-2.1-309(1)(e).
"Fixtures". § 6A-2.1-309(1)(a).
"Fixture filing". § 6A-2.1-309(1)(b).
"Purchase money lease". § 6A-2.1-309(1)(c).
(3) The following definitions in other chapters apply to thisChapter:
"Account". § 6A-9-102(a)(2).
"Between merchants". § 6A-2-104(3).
"Buyer". § 6A-2-103(1)(a).
"Chattel paper". § 6A-9-102(a)(11).
"Consumer goods". § 6A-9-102(a)(23).
"Document". § 6A-9-102(a)(30).
"Entrusting". § 6A-2-403(3).
"General intangibles". § 6A-9-102(a)(42).
"Good faith". § 6A-2-103(1)(b).
"Instrument". § 6A-9-102(2)(47).
"Merchant". § 6A-2-104(1).
"Mortgage". § 6A-9-102(a)(55).
"Pursuant to commitment". § 6A-9-102(a)(68).
"Receipt". § 6A-2-103(1)(c).
"Sale". § 6A-2-106(1).
"Sale on approval". § 6A-2-326.
"Sale or return". § 6A-2-326.
"Seller". § 6A-2-103(1)(d).
(4) In addition, chapter 1 of this title contains generaldefinitions and principles of construction and interpretation applicablethroughout this chapter.